What happened?
Pakistan has issued an open invitation to international crypto exchanges and virtual asset service providers, requesting them to apply for licenses under its newly formed regulatory authority. The Pakistan Virtual Assets Regulatory Authority (PVARA) is set to provide a stable framework for fintech innovation while aiming to curb illicit finance in a rapidly growing market.
Who does this affect?
This move primarily affects international crypto exchanges and virtual asset service providers looking to expand their operations. However, it also impacts the 40 million users in Pakistan’s virtually unregulated $300 billion annual trading volume market, providing them with safer, regulated options.
Why does this matter?
Pakistan’s crypto regulation advancements are significant as it provides clarity to investors, fosters fintech innovation, and integrates the country’s digital asset economy with global financial practices. Furthermore, an influx of licensed international firms could strengthen the market’s stability while controlling illicit finance activities.